Weatherly International PLC Rescheduling of repayment (3756P)
August 31 2017 - 1:01AM
UK Regulatory
TIDMWTI
RNS Number : 3756P
Weatherly International PLC
31 August 2017
31 August 2017
This announcement includes release of insider information
Weatherly International plc (AIM:WTI)
("Weatherly" or "the Company")
Rescheduling of repayment
Summary
Weatherly announces that debt repayments due to Orion Mine
Finance (Master) Fund I LP ("Orion") have been rescheduled; that
the Company has made the first drawdown on the uncommitted US$10m
loan; and that it has certain copper and currency hedges in place
out to March 2018.
Debt Financing and rescheduling of repayments
Weatherly has entered into a further amendment and restatement
agreement in relation to its existing facility with Orion (the
"Amendment and Restatement Agreement"). Under the facility as
amended by the Amendment and Restatement Agreement (the "Amended
Facility"), the first repayment of Facility B has been deferred to
30 October 2017 and Orion has agreed, effective until 30 October
2017, to limit its acceleration and enforcement rights on the terms
set out in the Amended Facility. The Facility B Final Maturity Date
remains unchanged at 28 February 2020, and each Facility B
repayment will be increased so that Facility B will be repayable in
11 equal repayments of US$9.7m each, including capital and
interest. The second Facility B repayment is due on 30 November
2017, with subsequent Facility B payments due quarterly
thereafter.
The repayment of US$10.3 million including capital and interest
under Facilities C and D of the Amended Facility has been deferred
until 30 October 2017.
Orion is a related party of the Company by virtue of Orion being
a substantial shareholder in the Company and consequently the
execution of the Amendment and Restatement Agreement is deemed to
be a related party transaction under the AIM Rules for Companies.
The independent directors of Weatherly (being all of the directors
other than Edwin Bennett, by virtue of his association with Orion)
consider, having consulted with Weatherly's nominated adviser, RFC
Ambrian Limited, that the terms of the Amendment and Restatement
Agreement are fair and reasonable insofar as Weatherly's
shareholders are concerned.
Loan draw downs and hedges
Weatherly advises it has drawn down US$2 million of the US$10
million uncommitted loan from Orion Mine Finance announced on
28(th) July 2017 to accelerate the building of the leach pads and
to fund working capital requirements at Tschudi. To seek to ensure
the loan would be sufficient to meet the necessary funding
requirements the Company has hedged both copper and currency out to
March 2018, and some of these hedges were entered into prior to the
recent upward movement in copper prices. Inclusive of hedges
previously announced, Weatherly has 1000 tonnes per month fixed
September to December at an average copper price of US$6,077 per
tonne and US$ to N$ exchange rate of 13.38; and 1000 tonnes per
month fixed January to March at an average copper price of US$6,464
per tonne and US$ to N$ exchange rate of 13.25.
As previously advised on 28 April 2017 as a loan rescheduling
fee, Orion has the right (but not the obligation) to buy, if
available, up to 700 tonnes of unhedged cathode each month from
Weatherly until 30 April 2018 at a price of US$6000 per tonne.
The Company and its subsidiaries are unlikely to generate
sufficient surplus cash to meet all loan repayments when due,
particularly in the near term. The Company continues to positively
engage with Orion on the subject.
For further information please contact:
Weatherly International plc +44 (0) 1707 800 774
Craig Thomas, Chief Executive Officer
Kevin Ellis, CFO and Company Secretary
RFC Ambrian Limited +44 (0) 20 3440 6800
(Nominated Adviser & Broker)
Nominated Advisor Contact: Stephen Allen / Bhavesh Patel
Broker Contact: Kim Eckhof
Blytheweigh +44 (0) 20 7138 3204
(Financial PR)
Tim Blythe / Camilla Horsfall / Nick Elwes
About Weatherly
Weatherly is an AIM listed copper mining company operating in
Namibia in southern Africa. Its principal assets are one operating
open pit copper mine called Tschudi and two underground copper
projects called Otjihase and Matchless.
This information is provided by RNS
The company news service from the London Stock Exchange
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